The imminent requirement for companies to address the risks posed by climate change is fast approaching, and faster than anticipated. In under a year, Canadian financial institutions under the regulation will be obligated to divulge their climate-related risks and emissions. This necessitates banks, trusts, and insurance firms to demand their clients to disclose their carbon emissions and the risks involved.
As of January 2024, any business seeking investment capital, mortgage, or loan, among other financial services, must be equipped and willing to report their carbon emissions and other exposures related to climate change.
Canada is not the only country implementing such requirements. The disclosure demands in Canada are quite similar to those of the United States Securities Exchange Commission, the United Kingdom’s Government, and the European Union.
Climate disclosure rules are regulations that require companies to disclose their climate-related risks, opportunities, and impacts on the environment. These rules are becoming increasingly important as investors, stakeholders, and regulators demand greater transparency and accountability from businesses.
Preparing for climate disclosure rules requires a thorough understanding of the regulatory landscape, as well as an assessment of your business’s climate-related risks and opportunities. Here are some steps you can take to prepare for climate disclosure rules:
In conclusion, it is crucial for businesses to prepare for the new disclosure requirements related to climate change. Companies must not only disclose their carbon emissions but also manage them too. To reduce emissions effectively, it is essential to engage a diverse group of people within the organization and establish a carbon management team.
At Climate Carbon, we understand the importance of addressing climate change and the challenges that come with it. Climate Carbon offers corporate carbon offsets derived from a varied collection of excellent carbon projects situated in Canada and other parts of the world. These projects are certified to adhere to globally accepted criteria and standards.
Our team of experts can assist you in achieving your climate goals and give you a competitive edge in the low-carbon economy. Contact us to learn more about how we can help your business navigate the changing landscape of climate-related regulations.